CSR Concept Map

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Transcript of CSR Concept Map

Corporate Social ResponsibilityCSRConcepts and ideas related to CSR and their practical application in the workplace (Focus is on class material)BRAINSTORMELEMENTSThe focus of this CSR concept map is based on concepts developed in class with some insight from readings and real life examplesElements of CSR What is CSR?Reasons for CSR By Kendra Tobin CSR ScandalsA Bibliometric Analysis of 30 years of Research and Theory on Corporate Social Responsibility and Corporate Social Performance by Frank G. A. De Bakker, Peter Groenewegen and Frank Den Hond- CSR originally started out as a criticism to business practices (Lecture 10)Some companies try and base their entire premise on the idea of CSR. An example of this is Lush Cosmetics. Lush cosmetics creates all their products with the environment in mind. Everything is organic, not tested on animals, and they use environmentally friendly methods to obtain all the ingredients in their products. (http://www.lush.ca/on/demandware.store/Sites-LushCA-Site/en_CA/AboutUs-OurStoryShow?cid=we-believe) Institutions One thing that I found interesting about this paper was the focus on employee and management integration into the CSR process. I found this is an argument that is commonly left out. Your employees and managers need to believe in what they're doing to have it be effective. - there needs to be "purely voluntary" reasons to constitute as CSR - it also discusses how rather than CSR being the sole decision of the corporation it is in fact the managers responsibility to create the policies and implement the CSR plan to it's employees and the public; in other words it is the managers who dictate CSR not the company - CSR can be used as a strategy to meet financial goals within a company (as opposed to creating it because it won't harm the financial goals of the company)Scandals Building collapse in Bangladesh Real life examplesExamples from the readingsExamples from class- told organizations what NOT to do (Lecture 10) **purpose of the economy was to contribute to a better life for citizens -> exactly what CSR wanted to do (Lecture 10)**DEFINITION OF CSR: *Please note that this is one of the many definitions of CSR and this is the one that cannot be found throughout class notes* CSR encourages organizations to consider - the interests of society and the environment by taking responsibility for the impact of the organizations activities on customers, employees, shareholders, and communities in all aspects of it's operations [can be environmental policies or commitments to gender equality in the work place (Lecture 1)- CSR can be seen as a model that involves: (1) Philanthropicresponsibility [be a good citizen] (2) moral responsibility [behave (3) legal responsibility [obey laws and contracts] (4) economic responsibility [be profitable] (Lecture 1)Stakeholder Management Who is a stakeholder? (1) everyone who has an influence on possible/actual performance of an organization (2) everyone who is affected/influenced by possible/actual performance (Lecture 1) *also see What is CSR?*Stakeholder theory: the way that you treat your stakeholders has an impact on your business opportunities (Lecture 1)Stakeholder responsibility: claims that parties to an agreement must accept responsibility for the consequences of their actionsGlobalization

Stakeholder approach assumptions: (1) possible negative external effects of behavior (2) awareness of consequences (Lecture 1)(3) Other groups know about interests (4) it's possible to change behavior- CSR is made up of normative, practical and empirical arguments (Lecture 1)-CSR can also be referred to as the triple-bottom line or the three P's (People, Profit, Planet) (Lecture 1)Stakeholders (Lecture 1)1. Latent - only power (physical, financial, informational) Example: Ex-employee2. Discretionary - no possibility to sustain legitimacy (3rd world)3. Demanding - single manifestation 4. Dominant - Investors and employees 5. Dangerous - not justified, but influential Example: Terrorist/Sabatoge6. Dependent - need representation by others (NGOs) Example Inuits 7. Definitive - unsatisfied stakeholders8. non-stakeholdersPowerUrgencyLegitimacy12345678CSR -> Reputation -> Legitimacy -> ProfitNeed for Legitimacy I(Lecture 1)*Also see Elements of CSR for more information*Globalization: economic and sociocultural relations between cultures, companies, individuals, and countries as become closer and more interdependent (Lecture 4)- globalization can lead to poor CSR decisions such asoutsourcing, but can also lead to the acquisition of new technologies and knowledge (Lecture 4)Consequences of globalization on CSR: (1) increased opportunities (2) small business have to completeglobally (3) global labour markets fluctuate (Lecture 4)Institutions: A set of mindsets (cognitive), social (normative), and legal (coercive) rules with respective enforcement mechanisms attached (Lecture 2)Institution theory: Institutions influence behavior byapplying institutional pressures and normative expectations - some say Inst. theory is about why actors behave irrationally (Lecture 2)What pressures? Cognitive - inside (entrepreneurs)normative - social expectations (consumerism = CSR), coercive - laws (Lecture 2) - how and institution reacts to these pressures will determine future performance (Lecture 2) Assumptions in Inst. theory: (1) Organizations that make up part of the same institutional field tend to behave similarly (2) Organizations follow institutions NOT as a consequence (3) organizations that are similar to main stream create legitimacy (Lecture 2)Innovation Innovation: doing new things in new ways. Creates new combinations and Opportunities (Can also be laws or policies (L.5)- Can be related to Institutional theory because new pressures will create new innovations through how the company adapts to social expectations (Lecture 5) Reporting-Companies report on their Socially Responsible Investing (SRI - considers social and enviornmentalimpact of investing) (Lecture 3)-Communication is key but not mandatory (L.3)BP Oil: BP oil suffered a major blow in 2010Reasons against CSR -Example of a companywith poor CSR practices is BP Oil- globalization has lead to poor CSR practices such as outsourcing (bad working conditions, little pay, child labour) (Lecture 4)- companies have further restriction with international laws (Lecture 4)- adaptation because of social expectations can lead to new opportunities and knowledge (Lecture 4)- CSR practice can cause companies to exploit the poor so that the company looks better (Lecture 5)- no accountability in CSR (Lecture 10)-Even the worst companies can write a good report. Examples: LIDL and Ikea (Lecture 10)*A story I once told you in class during the break that was told to me by a professor*A team went to a small African village to make them sustainable stoves so that they could cook their food without cutting down trees in the nearby forest (an attempt to end deforestation in the area. When they went back a year later to show their success in the forest growing back they found that the village people hated them becuase they claimed that their children were dying because of their stoves. In the end it turns out the smoke from the fires were keeping the bugs away so once they stopped using the wood from the trees infants were catching malaria and passing away. All in attempt to show care for the enviornment in the name of CSR. - CSR can help to improve the lives of both people and the planet - CSR can give companies and advantage in their industry - some consumers pay attention to CSR practice may choose to give business based on CSR initatives - better working conditions and fair wages CSR: "Actions that appear to further some social good, beyond the interests of the firm and what is required by law"- I think the wording here is interesting with "appear to further.." implying that it need only appear they are doing good rather than actually doing good - as well "beyond the interest of the firm and what is required by law" however with the pressure from other companies to create initiatives in the field of CSR it will always be in their interest to create CSR policies and there is an increasing interest in CSR reporting even at legal levelsCorporate Social Responsibility Theories: Mapping the Territory by Elisabet Garriga, Domenec MeleFour main groups of theories as the motivation of companies to partake in CSR practices: 1. Economic - Corporations are meant for the sole purpose of wealth creation and therefore social activity is accepted ONLY it is remains consistent with the main goal of wealth creation 2. Political - The social power of a corporation is reliant on it's relationship with society and surrounding communities and it's responsibility in the political arena 3. Social - Businesses need to consider the social demands of communities because without them the business wouldn't survive 4. Ethical - the businesses relationship with society creates moral and ethical values that the company must fulfill Triple bottom-line reporting as social grammar: Integrating Corporate Social Responsibility and Corporate Codes of Conduct by MolliePainter-Morland- codes of conduct can be used by companies as a way to mislead investors, consumers, and other organizations - this is because there is no official enforcements or ways to monitor this- can be known as green washing Book Review Essay: Taking Stock of Stakeholder Management by James P. Walsh- CSR committees can provide the "social glue" to help hold an organization together - will help employees and management see the good that they are doing Consumption as voting: an exploration of consumer empowerment by Roger Dickinson, Terry Newholm, Deirdre Shaw

- When companies implement CSR policies that consumers regard as ineffective or false they use their power in the way of boycotts and protests which can cost the companies thousands of dollars and ruin the companies image Philanthropy, Integration or Innovation? Exploring the Financial and Societal Outcomes of Different Types of Corporate Responsibilityby Minna Halme Juha Laurila- often times CSR practices can generate new business opportunities in new sectors as well as creating innovations that can help propel a business - there have been many (failed) attempts to make an impact in certain areas of the world or regard certain social issues (by governments, NGOs, and individuals) however with the help of CSR and the power of companies there is more optimism that progress can be made Managers’ Personal Values as Drivers of Corporate Social Responsibilityby Christine A. Hemingway Patrick W. MaclaganOne of their oil refineries in the ocean had a major spill which caused immeasurable damage to the environment as well as killing 11 of their workers in an explosion on the same oil rig. This was not the first time BP oil had been at the focus of a major scandal as well. As a result of the 2010 oil spill they redefined their CSR policies and vowed to help with the clean up for as long as it would take to help get the oceans, coastlines, and communities effected by this great tragedy back to normal. (https://www.dosomething.org/facts/11-facts-about-bp-oil-spill)CSR can lead to many positive outcomes for a business. These include: customer retention, a positive image in society, employee recruitment, and the overall happiness of employees and managers. One example used in class to show the positives of CSR on a business was HP (Lecture 3) In 2013 there was a collapse of a building known as the Rana Plaza building. This lead to the death of over 100 workers and came as a result of outsourcing. Companies began to move overseas because of cheaper labour. Even though the working conditions were far below par and the building was in desperate need of repair the companies allowed their products be manufactured there. Since the collapse of the building some companies from around the world have declared that they will begin to create building inspections and launch investigations into the conditions and quality of the working conditions on oversea facilities. (http://csr-news.net/main/2014/01/02/top-10-corporate-responsibility-stories-of-2013/)